|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
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The Product Lifecycle Management (PLM) Software Market is expected to register a CAGR of 6.92% during the forecast period of 2022 - 2027. The demand for robust data analytics software platforms in the industry is increasing. These trends have been augmented by the increasing adoption of IoT across the manufacturing industry. PTC's Windchill is an instance of the PLM software embedded with analytics for discrete manufacturers looking for IoT capabilities. This software can boost the PLM solution to sprint with flexibility.
- Digitalization is transforming products from physical goods and tangible services into digital twins, which is an exact replica of the physical product. Industry 4.0 is an important focus aiming at increasing competitiveness by targeting the reduction of production costs while improving product quality and production scalability by utilizing the digitalization of products. SAP is exploring digital supply chain scenarios where different suppliers submit offers directly to a blockchain platform to improve effectiveness across their business networks.
- In addition to this, PLM helps improve approval times and reduce delays by accelerating product introduction to the market, in turn saving costs for adopters. For example, NEXTracker, a technology development company for solar energy, which develops solar trackers, energy storage solutions, and advanced control software, has recently doubled its global manufacturing capacity to 300 megawatts per week. With it, the company adopted Arena's PLM, which helped the company cut approval and review times by nearly 60%, eliminated time-zone delays, and accelerated product introductions by 25%. Such benefits are further augmenting the demand for PLM in the market.
- The increased adoption of Industrial IoT (IIoT) in the production process is aiding the market demand for software applications, and IIoT adoption is expected to skyrocket over the forecast period. For instance, according to GSMA Intelligence, the number of IIoT-connected objects is expected to reach 13.7 billion by 2025.
- The primary reason behind the adoption of such technologies and digitization in industries is innovating products, maximizing profits, and reducing cost and time. PLM has not only proven to improve efficiency but also fuel product innovation. For instance, according to Autodesk, companies with PLM spend 7% less time on nonproductive data management tasks and reduce product development costs by an average of 16%.
- For example, Siemens' PLM software PROCIM'sIM's CAD solutions enabled Spezialfahrzeugbau Tunger, a designer and developer of promotional vehicles, to deliver quality and unique vehicles on schedule and enabled over 14 employee firms to meet the demands of high-profile customers. Such developments are expected to drive the demand even further, and owing to such increasing adoptions, the automotive industry is expected to hold a prominent share of the market.
- Moreover, the software sees major components, such as Multi-CAD solution, Product Data Management (PDM), and Digital Manufacturing, have become vital requirements of product manufacturer's enterprise processes, such as planning and design. The benefits offered by PLM outweigh the cost and time involved in the implementation of the solution.
- According to Beyond PLM, about 70% of the average products across several industries comprise parts and assemblies purchased from other companies. Managing the sourcing of parts, assembly, and distribution during the pandemic has witnessed several challenges due to the disruption of the supply chain and a limited number of employees working across the industries. This has created a digital shift even across medium-sized companies, which has boosted the PLM software market globally.
Scope of the Report
The Product Lifecycle Management (PLM) software market is witnessing growth, as PLM helps in managing the lifecycle of complex products. The Product Lifecycle Management (PLM) Software Market is segmented by Deployment Type (On-premise, Cloud, Professional Services), By End-User Industry (Electronics, Industrial Equipment, High-tech, Aerospace and Defense, Automotive, Architecture, Engineering, and Construction (AEC)), and by Geography.
|By Deployment Type|
|Electronics, Industrial Equipment, and High-tech|
|Aerospace and Defense|
|Architecture, Engineering, and Construction (AEC)|
|Other End-user Industries|
|Middle-East and Africa|
Key Market Trends
Increasing Production of Autonomous Vehicles to Drive the Market Growth
- Due to future autonomous vehicle penetration, the developers working on autonomous vehicles have to face various and increasingly complex challenges and, consequently, need to reevaluate their current processes and toolsets.
- Fully-functional autonomous driving systems require some of the most sophisticated software implementations that the carmakers have ever faced for combining a variety of data feeds (e.g., information from sensors, traffic data from the cloud, data coming from other vehicles or infrastructure) and tying it all into the vehicle's electronic and mechanical components to create a network of onboard systems that all work together reliably without user input or correction.
- The integrated ALM (Application Lifecycle Management) and product development platforms, such as codeBeamer ALM, will be instrumental in modernizing development processes for tackling the challenges introduced by the increasing product complexity and the growing reliance of products on sophisticated software applications in the autonomous vehicle sector.
- The increasing use of digital manufacturing and the rising integration of IoT in producing autonomous cars is one of the key trends that is expected to drive the PLM software market in the automotive sector during the forecast period. Tesla has integrated ENOVIA (cPDM software) and CATIA (CAD software) with DELMIA to simulate the manufacturing facility and process in the manufacturing of its model.
- Siemens PLM Software offers a full set of autonomous vehicle solutions for all key technical domains, from chip design to full vehicle validation. NX is one of the company's most potent CAD tools, helping clients run their product designing activities on the software.
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North America to Account for a Significant Share
- North America’s strong financial position enables it to invest heavily in advanced solutions and technologies that have provided a competitive edge in the market. Moreover, the region has the presence of several major product lifecycle management software vendors, such as IBM Corp. (United States), PTC Inc. (United States), and Oracle Corporation (United States). Hence, there is strong competition among the players.
- The automotive sector is growing at a significant rate in North America. As the economic growth of the region has a direct impact on the sales of passenger cars and commercial vehicles, PLM software is mainly used in the product development stage, which starts long before manufacturing begins in the automotive industry. It ensures advanced safety features, electronics, and embedded software content in vehicles.
- For instance, America Makes (a leading and collaborative partner in additive manufacturing (AM)/3D printing (3DP) technology and workforce development) chose to migrate to AWS and use the Siemens PLM Teamcenter solution for its digital storefront. America Makes has saved about USD 30 million compared to the cost of building an in-house solution. This factor helped in creating new solutions that helped in boosting the growth of the PLM software market.
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The Product Lifecycle Management (PLM) software market is highly competitive and fragmented due to the presence of numerous global players. Various global players are moving in R&D with the latest software techniques that are creating a high level of competitiveness in the market. The key players are Siemens, Dassault Systemes Deutschland GmbH, ANSYS, Inc, Autodesk Inc, Infor Inc. The companies are increasing their market share by forming multiple partnerships, investing in projects, and launching new products in the market.
- June 2022 - Infor partnered with Everstream Analytics, the global supply chain insights, and risk analytics company, to help organizations better anticipate and navigate supply chain disruptions. Evertsream's solution will complement the capabilities like shipments and inventory throughout the supply chain and visibility to orders by providing data on external events such as weather, labor strikes, port congestion, and cybersecurity. Through the partnership, Infor will integrate its end-to-end supply chain risk assessment and monitoring data with Infor Nexus multi-enterprise business network platform.
- May 2022 - Ansys Acquired OnScale to Expand its Cloud Portfolio with the help of Technology. This acquisition will help provide a cloud-native, web-based user interface (UI) for device-independent accessAnsys'sys's array of simulation technologies. With a cloud portfolio that supports location-independent, device-independent, and platform-independent access, customers can have maximum flexibility in leveraging simulation through a full-featured user interface(UIs), a web-based UI, as well as through a new class of simulation-based tools accessible by all engineers.
- June 2022 - Product development processes have evolved at never before seen speeds in recent years. Autodesk Fusion 360 offers the most significant improvement to any workflow and is constantly changing to meet the needs of engineers, professional designers, and machinists. Fusion 360 includes a New mesh environment that provides a historical timeline for mesh edits and improved conversion options, enabling the users to undo/redo actions as needed.
- February 2022 - Dassault Systems launched a life cycle assessment solution, Sustainable Innovation Intelligence, that enables companies to minimize the environmental impacts of the materials, products, and processes they create. The unique cloud-based solution integrates the eco-invent database about the effects of more than 18,000 agricultural and industrial processes into the virtual design, manufacturing engineering, operations and logistics, and product development. This solution is fully embedded in the Dassault Systèmes 3DEXPERIENCE platform and covers the entire value chain.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Impact of COVID-19 on the Product Lifecycle Management Software Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Adoption of Digitalization to Improve Production
5.1.2 Introduction of Cloud Technology to Consolidate the Information
5.2 Market Restraints
5.2.1 Lack of Interoperability among Dissimilar Product Versions
6. MARKET SEGMENTATION
6.1 By Deployment Type
6.1.3 Professional Services
6.2 By End-user
6.2.1 Electronics, Industrial Equipment, and High-tech
6.2.2 Aerospace and Defense
6.2.4 Architecture, Engineering, and Construction (AEC)
6.2.5 Other End-user Industries
6.3 By Geography
6.3.1 North America
6.3.4 Latin America
6.3.5 Middle-East and Africa
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Company Profiles
7.1.1 Siemens AG
7.1.2 Dassault Systems Deutschland GmbH
7.1.3 Autodesk Inc.
7.1.4 PTC Inc.
7.1.5 SAP SE
7.1.6 ANSYS Germany GmbH
7.1.7 Oracle Corporation
7.1.8 Aras Corporation
7.1.9 Arena Solutions
7.1.10 Infor Inc.
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The PLM Software Market market is studied from 2020 - 2027.
What is the growth rate of PLM Software Market?
The PLM Software Market is growing at a CAGR of 6.92% over the next 5 years.
Which region has highest growth rate in PLM Software Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in PLM Software Market?
North America holds highest share in 2021.
Who are the key players in PLM Software Market?
SAP SE, PTC Inc., Autodesk Inc., Dassault Systèmes , Siemens are the major companies operating in PLM Software Market.